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Mining could be the best thing to stabilise the South African economy after the COVID-19 crisis

It is evident that in order to tackle the effects of the current situation, South Africa will be required to pass a set of constructive economic reforms to improve the country’s financial performance and productivity. These measures are also going to be critical for achieving previously set targets to reduce poverty and unemployment.

Unfortunately, the only way South Africa can return to a reasonable investment grade will be through significant economic restructuring, especially since Moody’s has now lowered South Africa’s credit rating. Earlier this year, the country’s economic growth forecast was similarly greatly reduced, boosting the need for sizable economic restructuring.

The South African government has certainly been proactive in its response to COVID-19, with the country now in a 21-day lockdown. The lockdown has generally been well-received and supported by business, including the Minerals Council of South Africa. The collaborative efforts of the Department of Minerals Resources & Energy and the Minerals Council have shown that the country is putting the health of employees first and is committed to delivering essential services and minimising the damage to the operational capacity of the sector.

Industry experts believe that the 21-day lockdown could have a positive effect on metal prices in the longer term. It is forecast that platinum will benefit most from the current situation, a boon for South Africa, which last year contributed close to 75% of global output. The lockdown will particularly benefit those producers who are able to keep a sizable proportion of operations functional due to heavily automated processes and successful implementation of new technologies.

Iron ore could similarly benefit from the current situation, given that South Africa is one of the largest producers, whilst Chinese demand is slowly recovering as the country successfully leaves the COVID-19 crisis phase. Furthermore, the interest in bulk commodities has remained relatively high despite global quarantine measures being rolled out across some of the world’s largest economies.

Guernsey demonstrates strengths in a “land of opportunity”

It was clear from our trip to South Africa in February that the short-term picture in the country is nervous – but longer term is there is opportunity for many in South Africa, particularly with investment in infrastructure going on in the country.

Clients want to invest offshore at this time. Large flows of funds are leaving South Africa, heading for unit trusts, money markets and retail investment funds, and they are attracted to Guernsey for a number of reasons, not least diversification.

The significant business ties in financial services between South Africa and Guernsey are well established, and we were also speaking to more companies who are interested in setting up in Guernsey.

James Crawford, International Business Development Director at Guernsey Finance

We saw firms keen to invest in Guernsey, and others actually looking to establish a base in the island, as part of a move away from Mauritius and Cayman as default offshore jurisdictions for South Africans.

They were telling us that they saw a Guernsey platform as being more sustainable and offering them wider leverage, and spoke of Guernsey as being “ahead of the pack” compared to competitor jurisdictions. One manager said Guernsey “meets investors’ expectations as a reputable destination with a strong reputation”.

What are Guernsey’s strengths?

  • Excellent regulation
  • Same language, culture and time zones
  • Closest offshore financial services centre to London
  • Europe’s leading specialist centre for private equity administration
  • Internationally recognised by both US and European markets
  • Early and positive adopter of the Common Reporting Standard

Find out more about what Guernsey can do for you as a base for offshore investment. Go to https://www.weareguernsey.com/finance-industry/investment-funds/

Guernsey ready to ‘lend a hand’ for offshore investment

I am writing this while flying from Cape Town to Gatwick, following a busy week at the end of February in warm and welcoming South Africa.

The Guernsey delegation which I was part of were learning, always learning, about the local market and spreading the good word about the role that Guernsey plays in supporting it – and it was clear that there is so much more that can be done.

In the midst of a (medical and media-frenzy) pandemic, with markets shaking and shuddering more than the Boeing 777 now beneath me, it was refreshing to reflect on the long-run opportunities for a continent that will be home to seven of the world’s 20 most populous nations by 2050.

Paul Wilkes, Group Partner, Guernsey

This time round, in addition to meeting with friends new and old in both Johannesburg and Cape Town, we attended the SAVCA conference in Stellenbosch.

It is safe to say that the southern African private equity and venture capital ecosystem is vibrant, active and diverse. Taking place in the same week as SuperReturn Berlin, I am sure that the same conversations were taking place about the search for returns, valuation challenges and exit strategies in both hemispheres.

Here are a few of the themes that came up in my discussions with South African fund managers, allocators and investors.

Key asset classes

There was a bit of everything (as one would hope in a functioning economy), but the repeating strategies were infrastructure, education, healthcare and agriculture. Perhaps of comfort for some, there was a healthy supply of talk about fintech, agritech and biotech.

Infrastructure followed China’s belt and road initiative (as we all do) but was much broader – reflecting the impending demographic dividend across the continent. Healthcare and education covered both private service and the extended supply chain.

Impact investing

Investing for impact was a prevalent theme both in and out of the official sessions. Impact being taken in its broadest sense – sustainability and climate change; financial inclusion; access to waste and healthcare; gender empowerment and more. If you have an SDG, there is an urgent and lasting business case right here and right now to attack it. And attack it profitably.

Yemi Lalude of the private equity firm TPG was at pains to say that their $2.2 billion Rise Fund, focusing on impact investment, had a few key missions – to prove that you can impact invest at scale and prove that impact investing does not mean lower returns.

Mauritius

As the private equity and venture capital sector continues to draw international attention and demand, the historical preference for Mauritius as the fund domicile is being challenged.

Investor comfort, time zone challenges, talent scarcity and a diminishing tax benefit (including direct tax leakage in the island and a weakening tax treaty network) have led managers to look to more established fund centres, such as Guernsey, for long term stability. And Guernsey is ready and willing with the capacity, regulatory regimes, and hunger to lend a hand.

 

African Travel and Tourism Awards finalists announced

Africa is as unique as it is beautiful. It is underneath our starry skies that generations of storytellers have held court while telling their folktales.

The African Travel and Tourism Awards is a celebration of all that lies beneath our African skies. They honour the stars of African tourism and the enchanting tales they weave for our industry. These Awards recognise the best of national, regional and city tourist boards and recognises outstanding private sector companies and individuals.

With over 100 entries across the eight categories, the judges had the challenging task of choosing the finalists. Megan Oberholzer, Portfolio Director for Africa Travel Week went on to say, “The submissions were of an extremely high calibre, featuring tales of magic weaved from diverse voices, celebrating the stories that lie Under African Skies – stories of vitality, riches, movement, time, strength, change and promise.”

All the finalists for the Awards have demonstrated how through through vivid marketing campaigns and/or providing unique travel experiences they attracted travellers to their destination, venue or to use their product offering. The finalists have written the most compelling stories in the book of African travel.

WTM Africa Travel & Tourism Awards

The finalists are:

Most Compelling Tourism Story
  • Cape Town in Modern South by Cape Town Tourism
  • Spring Marketing Campaign by Northern Cape Tourism Authority
  • Cradle of Human Culture by WESGRO
Most Compelling Innovation and Technology Story
  • Q2B Booking Gateway by Q2B Solutions
  • VISTA Destination Network by Rainmaker Digital
  • Virtual Reality for Tanzania by View 4D
  • Travelstart Buses by Travelstart
Most Compelling Agency Story
  • Love Africa Marketing for Blood Lions
  • Have You Heard for Cape Town Tourism
  • CNN International Commercial for Dangote
  • Big Ambitions for SATSA
Most Compelling Luxury Story
  • Kololo Game Reserve by Kololo Game Reserve
  • Table Mountain Ring by Shimansky
  • Desert Rose by Shimansky
  • Rockwell Showroom by Shimansky
Most Sustainable Story
  • Eco Messages by Emboo Camp
  • How Many Elephants by How Many Elephants
  • Sierraously Inspiring by OhThePeopleYouMeet
  • International Dark Sky Certification Campaign by !Xaus Lodge
Most Digital Story
  • Back to Africa by Black and Abroad
  • JAW Designs for eBucks Travel
  • De Zeven relaunch by EcoAfrica Digital
  • Blood Lions by Love Marketing Africa
Most Compelling Adventure Story
  • Bronze Whalers by Marine Dynamic Tours
  • Pioneer Trail by Gondwana Game Reserve
  • Namib100 Hike by Live The Journey
  • Road Less Travelled by TravelNews East Africa
Most Compelling Foodie Story
  • Farm to Table by CNN International Commercial with Dangote
  • Travel with Purpose by 4Roomed eKasi
  • Africa’s Original Elephant Dung Gin by Indlovu Gin
  • Wild Food from Land and Sea by The Vineyard Hotel

The winners were due to be announced on 6 April at GOLD Restaurant as part of World Travel Market Africa 2020 in Cape Town, which has been postponed due to the COVID-19 pandemic. 

While the travel industry supports the #SaveTourism Campaign it is vital that we still celebrate the finalists.

The winners will be announced in May 2020.

All finalists and winners will be invited to attend a special event during World Market Africa 2021.

For more information, please visit World Travel Market (WTM) Africa: https://africa.wtm.com/

Managing welding costs by optimising shielding gas mixtures

Air Products Welding Specialist, Sean Young, offers expert advice on alternative options when selecting gases.

Manufacturing costs have increased significantly in the last few years due to a number of external factors. The current challenge for manufacturers is to manage costs in the welding process without compromising quality or output.

One way to manage the costs is to ensure that the correct material and processes are used from to onset to avoid unnecessary costs as a result of unsuccessful welds or rework.

Welding Specialist at Air Products, Sean Young explains for a weld that is successful, the source melted and the components to be joined, needs to be protected from oxidation and atmospheric contamination. This can be achieved by means of a flux or by using a shield gas. In the case of shielding metal arc (SMA) electrodes or submerged arc processes, a flux is used, whereas a gas shield is used with gas metal arc welding (GMAW), gas tungsten arc welding (GTAW) and most flux-cored processes.

Selecting optimised shielding gas mixtures for gas metal arc welding (GMAW) of carbon steel is one way in which the costs can be evaluated and minimised. For Air Products, it is important to provide different solutions to customers which suit their specific needs, and furthermore assist with cost savings where possible.

One way to manage the costs is to ensure that the correct material and processes are used from to onset to avoid unnecessary costs as a result of unsuccessful welds or rework.

Young offers specialist services and advice to customers on various components of the process, one of which is the selection of shielding gas. According to Young, it is important to look at the welding process, the material, its thickness and the metal transfer mode.

The weld properties are affected by shielding gases, and in order to optimise the choice of shielding gas, it is important to take all the elements into account that can affect the quality of the weld, such as spatter, bead profile, fusion and penetration.

Air Products offers a variety of shielding gases and mixtures

A number of mixtures and shielding gases are commonly used for welding:

  • CO2 is largely used for GMAW in dip transfer mode of carbon steels
  • Argon is suitable for GMAW of non-ferrous materials and all GTAW applications
  • Argon/CO2, Argon/O2, Argon/CO2/O2 mixes are used for GMAW of carbon steels as well as stainless steels
  • In the case of more advanced GTAW applications, more exotic argon/helium and argon/hydrogen mixes are available
  • T4dcWith more advanced GMAW applications, Argon/He/CO2 and Argon/H2/CO2 mixes are available

Sean Young elaborates on Argon and CO2: ”In any mixed shielding gas cylinder, argon is generally the dominant gas. In its pure form, it is an inert gas which is used to keep other gases out and has no chemical effect on the deposited metal weld. On its own, argon is used for all tungsten inert gas welding (GTAW/TIG) and GMAW aluminium and copper and its alloys.”

He further explains that pure CO2 is perceived as the original shielding gas for GMAW and is widely used for general purpose welding of steels today and it is a cost effective shielding gas. However, CO2 can destabilise the arc and cause spatter as it violently dissociates into carbon monoxide and oxygen in the arc. This leads to a hotter arc with deep penetration, causing a large droplet formation which is known to restrict the use of the CO2 to a dip-transfer mode.

Improving welds with active gas additions

Adding minority percentages of active gases such as oxygen and carbon dioxide can make significant improvements to the argon shielding gas for GMAW of carbon steels and stainless steels. “Adding small percentages of oxygen leads to a shielding gas with improved wetting action and it also decreases the surface tension of the molten metal, producing a flatter weld. Furthermore, the pinch-off effect is accelerated and smaller droplet sizes created. The result is a more stable metal transfer, a softer arc and reduced  spatter,” says Young.

…improving welding stability plays a major role in total welding costs.

An improved transfer stability ensures that the GMAW welding process is less sensitive to welding parameters and more tolerant to voltage and current variation. Ultimately, this leads to reduced time for machine set-up which improves the overall productivity. Young says that an argon/oxygen mixture of up to 2% oxygen is the ideal for stainless steel applications.

In instances where CO2 is added to Argon in a two-part mix, there is an improvement in the penetration of carbon steel joints. A limit in the percentage CO2 plays a role to obtain a smooth metal transfer in the spray transfer mode and to overcome instability issues.

According to Young, you obtain an improved penetration and welding speed when increasing the CO2 as a result of the increase in temperature in the welding arc. He warns that more than 15% CO2 in argon causes spatter and the instability to re-emerge. According to him, 15% is optimal and in the case of thinner materials where penetration is not required, 3% CO2 is sufficient.

The benefits of three part mixes

GMAW shielding gas mixtures can be optimised to provide the best weld properties for particular applications by combining the benefits of CO2, O2 and argon.

Young elaborates on three part mixtures: “The mixtures generally consist of argon with CO2 of up to 15% and O2 of up to 3%. It is possible to improve the arc stability, optimise metal transfer characteristics, minimise spatter generation and improve penetration and the bead profiles by using all three the gases.”

He explains that there is a vast difference between two part and three part mixtures, in particular when you look at the spatter generated during the welding process – three part mixtures generates far less spatter. “In the long run, welding costs accumulate when you take the time and cost of post-weld activities and cleaning up into consideration. A slightly more expensive gas mixture might make it worthwhile to switch if an accurate cost comparison is done.”

There are numerous other benefits of using three part mixtures: increased quality, ease of use, welding stability is more tolerant to variations in parameter settings, improved profitability, productivity and efficiency.

GMAW shielding gas mixtures can be optimised to provide the best weld properties for particular applications by combining the benefits of CO2, O2 and argon.

Young concludes by explaining that improving welding stability plays a major role in total welding costs. He mentions an example of when you draw a direct comparison between a two part argon/CO2 mix and Air Products’ MagMix3 (three part mix with CO2 in the 5% range), in which case the welding time for a 30cm weld was reduced from 58 to 48 seconds. “This translates into a 20% increase in welding speed with reduced post-weld grinding required, less spatter and a cleaner look.”

Air Products strives to assist customers in streamlining processes and offers solutions to increase production and productivity. As the welding specialist, Sean Young is able to provide expert advice on alternative options when selecting gases.

For more information on Air Products, visit www.airproducts.co.za

An opportunity to focus on local manufacturing in KZN

Local manufacturing matters

These uncertain global economic times provide us with an opportunity to focus on local manufacturing and to build our manufacturing base. At some stage our markets will need to rebound and there will be added demand and growth potential for products. This will provide a business opportunity for our manufacturers.

The Manufacturing Indaba KwaZulu-Natal will focus on the ‘business of manufacturing’ and supporting companies with access to markets and provides a platform to sell products and services.

Key issues emanating from the finance discussion at the event included:
  • South Africa’s manufacturing sector needs to collaborate closely with the government to adopt a more project-driven approach to opportunities for catalytic growth.
  • Most local manufacturers are suffering from insufficient demand for their products, and are therefore operating below maximum production capacity and have haemorrhaged jobs.
  • There is a need to work closely with the government to take proactive steps to seek new opportunities for the local manufacturing industry to expand production.
(Manufacturing Indaba KwaZulu-Natal – date to be advised)
Learn more: https://manufacturingindaba.co.za/mi-kzn/

 

Smart Procurement ensures SMMEs are protected and procurement moves forward in SA

Author George Bernard Shaw said: “Those who cannot change their minds cannot change anything.” As South Africa enters a 21-day lockdown, businesses are faced with the challenge of finding new ways of adapting and surviving.

“In light of the uncertainty of the coming months, as we battle the COVID-19 pandemic as a united nation, Smart Procurement has put in place plans to move its 7th annual Smart Procurement World Western Cape conference to an online platform, being hosted on 19 and 20 May 2020,” says Keshni Reddy, Head of Commercial for Smart Procurement, the organisers of the event.

“Smart Procurement is cognisant of the needs of those engaged in the supply chain and procurement fraternities within the South African private and public sectors to stay current with ongoing procurement events and legislation. As such, we will be leveraging the vast experience and expertise of our parent company Commerce Edge (online training specialists) to tailor our virtual learning platform,” Reddy points out.

If possible, support sites will be made available on request to host small delegate groups of no more than 10 people. Alternatively, delegates can log into the sessions as individuals.

“Virtual conferencing has tangible user benefits, allowing not only time for questions and answers but also encouraging individual engagement during sessions. Real-time polls and surveys allow for industry benchmarking and the testing of content retention. Some sessions will be mandatory and others optional, and all attendees will have access to each presentation after it has taken place. We can extend this access for up to six months to allow for inter-departmental meetings to drive objectives post-event,” says Jodi-Lee Rood, Project Director for Smart Procurement.

Rood explains that the online conference will be complemented by a one-day contact session in November in Cape Town. This session will include:

  • Workshops and Masterclasses. Feedback from May’s hosted virtual sessions will be provided to delegates to cement lessons learned.
  • Networking Day: SmartXchange, Supplier MatchUp and Table Discussions. This means that networking time for the event has now been increased by 50% and involves one-on-one contact with speakers, SMMEs, colleagues and other delegates.

Online conference attendance is mandatory in order to attend the November Workshop/Masterclass and Networking Day.

Beneficially, CPD points can be accumulated and managed through online conference attendance. Amongst other benefits, SMMEs will receive:

  • An online Entrepreneurial and Business Assessment: Two in depth assessments as a benchmark to help SMMEs ascertain the health of their business.
  • Access to the webinar on: How to Pandemic Proof your Business
  • An online Pitching Masterclass which will ensure that the SMME’s pitches are sleek and prepared before starting with any linkage to buyers.

“A number of sponsorship opportunities are available for the public and private sector, providing them with an opportunity to engage in the webinar sessions as thought leaders, and to join the SmartXchange Online Meeting platform to set up virtual meetings with Smart Procurement World participants. We urge interested parties to contact us for the complete list of benefits that accrue to sponsors,” says Reddy.

For more information on the upcoming series of Smart Procurement World events for 2020 please visit the website at www.smartprocurementworld.com

Special Economic Zone planned for the Wild Coast

Spekboom leaves (Source: Wikipedia)

2020 overview of the agriculture sector in the Eastern Cape

Getting small-scale farmers connected to agri-processing value chains is a major goal for agricultural policy-makers in the Eastern Cape.

The creation of a Special Economic Zone (SEZ) on the Wild Coast with a focus on agri-processing is part of a plan to achieve this. If farmers have access to the processing and production of products from meat, milk, wool and leather, greater value will be created and more jobs will become available.

Agri-parks situated strategically around the province support the addition of value: these have been developed at Lambasi, Ncorha, Sundays River Valley, Butterworth, Matatiele and Sterkspruit-Senqu.

The Eastern Cape Department of Rural Development and Agrarian Reform (DRDAR) has several programmes to support small-scale farmers. Sixteen feedlots have been established for livestock farmers. Berlin Beef, a joint government and private-sector export-oriented venture, aims to support transformation by supporting 200 black livestock farmers to participate in the business.

Rural Enterprise Development (RED) hubs are a key plank in the strategy of the DRDAR to promote food security and employment creation. Small-scale farmers are supplied with equipment, infrastructure and training to help them engage with the mainstream economy.

A farming incubator supported by the Thrive Fund of South African Breweries uses its R190-million loan book to support small-scale farmers in seven provinces. FarmSol provides loans and technical support helps farmers get access to value chains. SAB gets its ingredients for beer (barley, hops and maize) from FarmSol beneficiaries.

The Eastern Cape Development Corporation (ECDC) supports agri-processing through loans and equity arrangements: projects that have received financial support include aquaculture, the production of dietary fibre from pineapples and bamboo products. There are about 70 000 people employed on commercial farms across the Eastern Cape, with a further 436 000 people dependent on smaller farms, mostly in the east.

Addo Elephant National Park is home to a great concentration of “spekboom”, the world’s most efficient converter of carbon dioxide. Elephants love to eat it, but it also has become the plant of choice in carbon swops. An international airline will enter a partnership with a game reserve, for example, whereby the game reserve will plant several thousand stems. In return, the airline gets carbon credits.

The National Woolgrowers Association of SA (NWGA), the country’s main producer organisation, is based in Port Elizabeth, as is Cape Wool SA, which used to be known as the South African Wool Board.

The NWGA has a simple motto: “more sheep: more wool” which it tries to achieve through its Production Technology Services which is offered to a membership base of 4 500 commercial and 20 000 communal members. Cape Wools SA is the industry representative of the broader industry including processors, brokers, producers and traders.

Angora goats (Image: SAMIL Natural Fibres)

Rich in assets

The Eastern Cape provides approximately a quarter of South Africa’s milk, and the industry is further expanding as producers are favouring high-rainfall coastal areas such as the Tsitsikamma region of the Eastern Cape. The bigger dairies include Coega Dairy which was founded in 2011 and is situated in the Coega SEZ. It produces the brand Coastal, sells milk to all parts of South Africa and manages the Famous Brands Cheese Company.

Small-scale dairy farming presents an opportunity to develop the industry in the former homeland areas, especially in products such as milk powder, speciality cheeses and long-life milk. Ouma Rusks are still made in the small town where they were invented, Molteno.

Cabdbury Chocolates operates a big site across the lake from the Nelson Mandela Stadium in Port Elizabeth and Nestlé makes 11 kinds of chocolate at its factory in East London. The Sasko mill in Port Elizabeth is the province’s only big milling plant.

The Eastern Cape is the country’s second-largest producer of citrus fruit. Oranges make up the vast majority of citrus products. Deciduous fruits such as apples, pears and apricots are grown primarily in the Langkloof Valley. Another crop in which the Eastern Cape leads national production is chicory. The province’s pineapple crop is grown in the same part of the Sunshine Coast that produces chicory.

The macadamia nut sector is growing. The Eastern Cape Rural Devel-opment Agency (ECRDA) has partnered with a community to plant the popular nut at Ncera in the Tyume Valley north of Alice.

The Eastern Cape holds 21% of the country’s cattle (about 3.2-million), 28% of its sheep (seven-million) and 46% of its goats, making it the largest livestock province by a substantial margin. The rich natural grasslands of the Eastern Cape have the potential to produce high-value organic meat, a product that is proving increasingly popular in health-conscious international markets.

Coca-Cola Sabco and SAB Limited’s Ibhayi brewery are the major beverage manufactur-ers in Port Elizabeth and Distell has a bottling plant in the city. Sovereign Foods in Uitenhage is the country’s fourth-biggest producer of poultry.

Online resources:

Find more sector insight for the Eastern Cape Province in the Eastern Cape Business 2020 edition.

View the e-book:

Powering South Africa – what’s next?

For years, Africa’s most developed economy has struggled with power generation and supply, as load shedding and power cuts have stifled economic growth. With the country once again in recession, it seems that long-awaited change is finally taking shape.

In February’s State of the Nation Address, President Cyril Ramaphosa promised “historic and unprecedented development” in the country’s energy sector, as well as “to make sure no African child is left behind in the transition to a low-carbon, climate resilient and sustainable society”.

So, how can this coal-reliant economy successfully navigate the transition to a cleaner energy mix? We’ve gone beyond the soundbites to bring you a rundown of the biggest energy stories in South Africa right now.

1. Cleaner Coal

With veteran Minister Gwede Mantashe now presiding over both the minerals and energy portfolios, coal is expected to service most of South Africa’s energy needs for the next decade. It’s also a revenue-generator, the country is the seventh-largest coal producer in the world and sells about 72 million tonnes a year. As such, it’s no surprise that South Africa is looking into ways of cleaning up its coal to reduce emissions.

Strategies suggested have included the installation of more efficient boilers and the use of much talked-about carbon capture and storage (CCS) technology, which is currently being championed throughout the South African coal industry. Professor Rosemary Falcon, director of the Fossil Fuel Foundation in Johannesburg recently commented “clean coal is possible, and South Africa should not sterilise its vast coal reserves but use them for energy production.”

In order to achieve this goal, South Africa first needs access to technology that would make CCS viable – experts suggest that, despite the hype, this could still be some years away. It would then need to retrofit old power stations – a time-consuming and expensive initiative for a country whose debt is already spiralling out of control.

2. Self-Generation

The first months of 2020 have seen a series of announcements regarding electricity self-generation. At the 27th Mining Indaba in February, Gwede Mantashe announced a revision of Schedule 2 of the Electricity Regulation Act that would enable self-generation to help close the energy gap caused by deteriorating Eskom plant performance.

As well as enabling businesses to become captains of their own destiny when it comes to securing their electricity supply, self-generation also promises to up the proportion of power generated from renewables – providing that government can deliver much-needed clarity regarding precise conditions and requirements.

Many companies are already looking into solar power – the set-up cost of which has decreased significantly in recent years – as a way of powering their operations.

3. IPPs

2020 has so far been a significant year for Independent Power Producers (IPPs) in South Africa. Just last week, the Supreme High Court ruled against the Coal Transporters Forum in a case that pursued the annulment of power purchase agreements with IPPs – a triumph for those who want to see the country move towards a cleaner energy mix.

What’s more, following President Ramaphosa’s commitment to restart the long-delayed Renewable Energy Independent Power Producer Procurement Programme, many regions are moving towards purchasing power from IPPs.

In his budget speech last week, Western Cape Finance Minister Tito Mboweni announced that it will soon be possible for municipalities in financially good standing to purchase electricity from Independent Power Producers. Mboweni and Ramaphosa’s comments are a victory for the City of Cape Town, whose fight to purchase energy from IPPs goes back to 2015.

At AOW, we’re committed to supporting South Africa in securing its energy future. In 2020, we’re launching a brand-new content stream that will focus on future energies to run alongside Africa Oil Week.

Aimed at integrated energy companies, IPPs, banks and financiers, this one-day evet will tackle the global energy transition from a uniquely African perspective. Topics discussed will include: policy reforms, energy infrastructure, decarbonisation technology and more.

As it stands, Africa Oil Week, 4-6 November 2020 in Cape Town, South Africa will be going ahead as scheduled.

For more information, visit www.africa-oilweek.com

 

A wide variety of mohair yarns are finding markets

Photo: SAMIL Natural Fibres
Will Brexit have an impact on the mohair sector?

Brexit will have limited to no impact on the mohair sector in South Africa as very little mohair is traded via the United Kingdom. Our major trading partners are China and Italy, though Japan, Taiwan and South Korea are also important markets.

Do you export to Scandinavia?

SAMIL exports exquisite Hand Knitting yarns to Scandinavia. We have created bespoke yarns for these markets, incorporating Scandinavian influences in both style and colours.

Do you support small-scale farmers?

We formed SAMIL Farming in 2011 to increase mohair availability through joint ventures with commercial and emerging farmers. An assistant farming manager has been appointed to focus solely on increasing our emerging farmer partnerships. Among the success stories are Ms Sarah Louw of Jansenville and Ms Ntombomzi Qeqe-Lwana of Kommadagga.

Michael Brosnahan

Michael emigrated from the UK to KwaZulu-Natal in South Africa in 1981 in order to take up the position of Quality Assurance Manager with the Frame Group.

A chartered member of the Textile Institute in South Africa, he has managed several large textile companies since then. Mooi River Textiles was awarded Cotton Spinner of the Year for three consecutive years under his leadership. 

He was appointed CEO of SAMIL Natural Fibres in Port Elizabeth in 2016.

Are your investments in combing and spinning paying off?

The investments have not only led to the upliftment of the quality of the products but created the opportunity to produce yarn types that we were previously unable to. We see the investments as the opportunity to secure employment for our employees into the future through enabling us to increase our market share.

What sort of variety do you offer in terms of types of yarns?

SAMIL Spinning produces a wide range of yarns focussing mainly on mohair yarns or mohair blended with other noble fibres such as alpaca and wool as well as all-natural yarns which includes blends with silk and bamboo.

We produce yarns of natural fibres blended with man-made fibres such as polyamide, polyester or acrylic fibres, as requested by our customers. Yarn styles range from flat worsted yarns for items such as socks and jerseys, to black headband ties used by Arab sheiks in the Middle East and fancy loop and brushed yarns used by Europe’s top fashion houses.

For more information, visit www.samil.co.za

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